By Ketki Saxena
Investing.com – Scotiabank (TSX:BNS) reported first quarter net income of $1,772 million compared to $2,740 million in the same period last year. Diluted earnings per share (EPS) were $1.36, compared to $2.14 in the same period a year ago.
Adjusted net income( for the first quarter was reported at $2,366 million and EPS was $1.85, down from $2.15 last year.
The Bank’s net interest margin contracted to 2.11% in the quarter, down 2.18%. The bank set aside $638 million in provisions for credit losses.
By segment, Scotiabank’s Canadian Banking delivered adjusted earnings of $1,088 million boosted by margin expansion, and strong asset and deposit growth. However, higher provision for credit losses and higher expenses weighed on results.
Scotia’s International Banking generated adjusted earnings of $661 million, up 20% on higher net interest income as loans grew 19%, and strong non-interest revenues.
Global Wealth Management adjusted earnings fell 6% to $392 million as market conditions drove declines in assets under management, impacting fee income, although growth in its advisory business remained strong.
Global Banking and Markets saw earnings of $519 million as net interest income grew a strong 22% benefiting from a 33% growth in loans.
By late afternoon trading, Scotiabank shares were down over 5%, amongst the top declining stocks on the TSX today.